What is interesting to me is not that it is being said but who is saying it and most importantly no one is listening. Here are some comments by Jonathan Golub, New York-based managing director and U.S. equity strategist for JPMorgan Asset Management speaking before a group of about 50 clients and business leaders at Nonna's Euro American Ristorante:
- There's no real estate market in the nation that's beat the stock market in the last three years. Investors don't recognize the nearly unprecedented three-year surge in stocks because most are 'mentally anchored' to March 2000, the top of the tech-driven market.
- Americans, many of whom "feel wealthy" because of the growing value of their homes, are spending more than they make.
- The riskier the company, the junkier the company, the worse your management was, the better your return was. "Why? Because when you put free money in the system, junk rises to the top."
- Prudent investors should seek quality companies with strong earnings, dividends, good business plans and solid management. More traditional investments should be in favor "not just for the next six months, but for the next two to three years."
- Something must curb the level of consumer spending, and it likely will have to be something drastic
- "I don't see something that's going to quietly burst this bubble. I frankly thought it was going to be (hurricane) Katrina. ... But Americans shrugged that off like it was a little storm. That was shocking."
Furthermore, in spite of a warning bell that was rung by TOLL and accompanied by a choir of rising rates from the FED, it seems that everyone is deaf. Apparently there is still just too much money sloshing around right now that needs to be destroyed before anyone pays attention.
Mike Shedlock / Mish
http://globaleconomicanalysis.blogspot.com/
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